Credit Card Life Insurance: A Shield for Families Against Debt After Death or Accident

• Credit Card Outstanding Cover or Credit Card Life Insurance protects families from debt burden if the cardholder dies or faces an accident.
• This insurance pays off the outstanding credit card balance directly to the bank, preventing recovery calls and legal notices for the family.
• The cover amount is typically equal to the card's limit or the outstanding balance at the time of death, and it usually doesn't require extensive medical examinations.
• Banks like Axis Bank and HDFC Bank offer such covers; for example, Axis Bank offers ₹1 lakh cover for ₹560 annually, and HDFC Infinia includes up to ₹9 lakh cover in its annual fee.
• While beneficial for debt protection, experts advise combining it with comprehensive term life insurance for complete financial security.

Why It Matters: Credit card life insurance offers crucial financial protection, settling outstanding debts after a cardholder's death or accident.